XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.19.1

STOCK AWARD PLANS | 3 Months Ended
--- | ---
Mar. 31, 2019
STOCK AWARD PLANS [Abstract] |
STOCK AWARD PLANS |
(9) | STOCK AWARD PLANS
The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the three months ended March 31, 2019 and 2018 were as follows (in thousands):
|  | Three months ended March 31, |
|  | 2019 |  |  | 2018 |
Compensation cost |  | $ | 4,900 |  |  | $ | 7,551 |
Income tax benefit |  | $ | 1,169 |  |  | $ | 1,760 |
The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options, restricted stock awards and performance awards. On February 19, 2018, the employee stock award plan was amended to also allow for the granting of restricted stock units (“RSUs”) to selected officers and other key employees. The amendment included a provision for the continued vesting of unvested stock options and RSUs for employees who meet certain years of service and age requirements at the time of their retirement. The vesting change resulted in shorter expense accrual periods on stock options and RSUs granted after February 19, 2018 to employees who are nearing retirement and meet the service and age requirements. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. Substantially all stock options outstanding under the plan have terms of seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At March 31, 2019, 1,363,737 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights. The following is a summary of the stock option activity under the employee plan described above for the three months ended March 31, 2019:
|  | Outstanding Non- Qualified or Nonincentive Stock Awards |  |  | Weighted Average Exercise Price |
Outstanding at December 31, 2018 |  |  | 464,702 |  |  | $ | 69.85 |
Granted |  |  | 107,724 |  |  | $ | 73.93 |
Exercised |  |  | (18,903 | ) |  | $ | 65.48 |
Canceled or expired |  |  | (15,400 | ) |  | $ | 71.05 |
Outstanding at March 31, 2019 |  |  | 538,123 |  |  | $ | 70.79 |
The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at March 31, 2019:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life in Years |  |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value |  | Number Exercisable |  |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
$51.23 |  |  | 87,369 |  |  |  | 3.7 |  |  | $ | 51.23 |  |  |  |  | 87,369 |  |  | $ | 51.23 |  |
$64.65 - $68.50 |  |  | 103,201 |  |  |  | 5.2 |  |  | $ | 67.37 |  |  |  |  | 47,496 |  |  | $ | 68.47 |  |
$70.65 - $75.50 |  |  | 309,174 |  |  |  | 5.1 |  |  | $ | 74.32 |  |  |  |  | 128,056 |  |  | $ | 73.97 |  |
$93.64 - $101.46 |  |  | 38,379 |  |  |  | 1.8 |  |  | $ | 96.01 |  |  |  |  | 38,379 |  |  | $ | 96.01 |  |
$51.23 - $101.46 |  |  | 538,123 |  |  |  | 4.7 |  |  | $ | 70.79 |  | $ | 3,172,000 |  |  | 301,300 |  |  | $ | 69.32 |  | $ | 2,562,000
The following is a summary of the restricted stock award activity under the employee plan described above for the three months ended March 31, 2019:
|  | Unvested Restricted Stock Award Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Nonvested balance at December 31, 2018 |  |  | 214,216 |  |  | $ | 64.73 |
Vested |  |  | (62,341 | ) |  | $ | 68.27 |
Forfeited |  |  | (10,399 | ) |  | $ | 63.56 |
Nonvested balance at March 31, 2019 |  |  | 141,476 |  |  | $ | 63.26 |
The following is a summary of RSU activity under the employee plan described above for the three months ended March 31, 2019:
|  | Unvested RSUs |  |  | Weighted Average Grant Date Fair Value Per Unit |
Nonvested balance at December 31, 2018 |  |  | 141,055 |  |  | $ | 75.59 |
Granted |  |  | 134,315 |  |  | $ | 73.96 |
Vested |  |  | (24,523 | ) |  | $ | 75.50 |
Forfeited |  |  | (4,029 | ) |  | $ | 75.43 |
Nonvested balance at March 31, 2019 |  |  | 246,818 |  |  | $ | 74.72 |
The Company has a stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for automatic grants of restricted stock to nonemployee directors after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are ten years. The restricted stock issued after each annual meeting of stockholders vests six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At March 31, 2019, 486,058 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified independent directors. The following is a summary of the stock option activity under the director plan described above for the three months ended March 31, 2019:
|  | Outstanding Non-Qualified or Nonincentive Stock Options |  |  | Weighted Average Exercise Price |
Outstanding at December 31, 2018 |  |  | 131,104 |  |  | $ | 70.14 |
Exercised |  |  | (6,000 | ) |  | $ | 29.60 |
Outstanding at March 31, 2019 |  |  | 125,104 |  |  | $ | 72.08 |
The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at March 31, 2019:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life in Years |  |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value |  | Number Exercisable |  |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
$41.24 – $56.45 |  |  | 31,276 |  |  |  | 1.7 |  |  | $ | 50.61 |  |  |  |  | 31,276 |  |  | $ | 50.61 |  |
$61.89 – $62.48 |  |  | 28,000 |  |  |  | 3.3 |  |  | $ | 62.27 |  |  |  |  | 28,000 |  |  | $ | 62.27 |  |
$70.65 – $99.52 |  |  | 65,828 |  |  |  | 4.9 |  |  | $ | 86.45 |  |  |  |  | 65,828 |  |  | $ | 86.45 |  |
$29.60 – $99.52 |  |  | 125,104 |  |  |  | 3.8 |  |  | $ | 72.08 |  | $ | 1,140,000 |  |  | 125,104 |  |  | $ | 72.08 |  | $ | 1,140,000
The following is a summary of the restricted stock award activity under the director plan described above for the three months ended March 31, 2019:
|  | Unvested Restricted Stock Award Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Nonvested balance at December 31, 2018 |  |  | 264 |  |  | $ | 85.30 |
Vested |  |  | (264 | ) |  | $ | 85.30 |
Nonvested balance at March 31, 2019 |  |  | — |  |  | $ | — |
The total intrinsic value of all stock options exercised under all of the Company’s plans was $438,000 and $2,051,000 for the three months ended March 31, 2019 and 2018, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $105,000 and $478,000 for the three months ended March 31, 2019 and 2018, respectively. The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $4,222,000 and $8,764,000 for the three months ended March 31, 2019 and 2018, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $1,007,000 and $2,042,000 for the three months ended March 31, 2019 and 2018, respectively. The total intrinsic value of all the RSU vestings under the Company’s employee plan was $1,653,000 for the three months ended March 31, 2019. The actual tax benefit realized for tax deductions from RSU vestings was $394,000 for the three months ended March 31, 2019. There were no RSU vestings for the three months ended March 31, 2018. As of March 31, 2019, there was $3,546,000 of unrecognized compensation cost related to nonvested stock options, $7,126,000 related to nonvested restricted stock awards and $12,206,000 related to nonvested RSUs. The stock options are expected to be recognized over a weighted average period of approximately 2.0 years, restricted stock awards over approximately 2.2 years and RSUs over approximately 4.3 years. The total fair value of options vested was $1,842,000 and $2,489,000 during the three months ended March 31, 2019 and 2018, respectively. The fair value of the restricted stock vested was $4,222,000 and $8,764,000 for the three months ended March 31, 2019 and 2018, respectively. The fair value of the RSUs vested was $1,653,000 for the three months ended March 31, 2019. The weighted average per share fair value of stock options granted during the three months ended March 31, 2019 and 2018 was $22.41 and $23.37, respectively. The fair value of the stock options granted during the three months ended March 31, 2019 and 2018 was $2,414,000 and $2,706,000, respectively. The Company currently uses treasury stock shares for restricted stock grants, RSU vestings, and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the options during the three months ended March 31, 2019 and 2018 were as follows:
|  | Three months ended March 31, |
|  | 2019 |  |  | 2018 |
Dividend yield |  | None |  |  | None |
Average risk-free interest rate |  |  | 2.5 | % |  |  | 2.7 | %
Stock price volatility |  |  | 28 | % |  |  | 27 | %
Estimated option term |  | Six years |  |  | Six years |

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration